NASCAR dials new title sponsor

CHARLOTTE, N.C. (AP) At the end of next season, NASCARs newest champion will likely raise the Nextel Cup over his head. Maybe hell then use a push-to-talk phone to make some celebratory calls.

Both scenarios are possible now that wireless communications giant Nextel has reached a deal to replace R.J. Reynolds Tobacco Co. as the title sponsor of NASCARs premier series, the Winston Cup.

NASCAR has scheduled what it called a major news announcement for Thursday in New Yorks Times Square, with chairman Bill France Jr. and top drivers Dale Earnhardt Jr. and Jeff Gordon to attend.

NASCAR did not disclose the subject, but two sources confirmed on the condition of anonymity that Nextel will be answering the call NASCAR put out in February when RJR said it wanted out of its contract.

RJR has been limited in marketing its NASCAR sponsorship by the 1998 master settlement of state lawsuits against the tobacco industry. RJR cannot advertise Winston, its top cigarette brand, on radio or television and is expressly forbidden to market to people under 18.

Those limitations and the uncertain business climate in the tobacco industry led RJR in February to give NASCAR permission to look for another title sponsor, despite a five-year contract extension RJR had signed last year.

So Nextel will now connect to the estimated 75 million fans in more than 100 different countries that follow the sport. It will also be a sponsor capable of advertising and reaching the youthful demographic NASCAR has long pursued.

Marc Ganis, a sports finance expert who heads Chicagos Sportscorp Limited, said the Nextel deal is good for both sides.

I think its an excellent fit for Nextel and in many ways should work well for NASCAR, Ganis said. Look how quickly they were able to go out and replace the sponsor. In this (economic) environment, thats extraordinary. Plus, they substitute a controversial product like cigarettes for a universal, non-controversial product like cell phones.

RJR has been with NASCAR for 31 years, signing in 1972 to take over what was then called the Grand National Series. The company teamed with NASCAR to build the Winston Cup Series into the nations hottest sports property.

RJR spends anywhere from $30 million to $60 million annually marketing Winston through NASCAR. Its not clear what Nextel, based in Reston, Va., will spend, or what the series will now be called.

One NASCAR source, speaking on the condition of anonymity, said Nextels presence will prevent other wireless companies from coming into the sport. Companies with sponsors already on the side of a car, such as Alltel and Cingular Wireless, can continue to be involved, the source said.

Worried there might be conflicts, Childress went to NASCAR officials after hearing of Nextels impending entrance.

There didnt seem to be a great concern, he said Tuesday. Theres not going to be a problem with Cingular and the other wireless company thats in there now because I think they would be grandfathered in.

Penske Racing president Don Miller also has said he and Alltel officials do not foresee problems.

It is not clear how the decision would affect AT&T, which is NASCARs official telecommunications company. AT&T has its own wireless communications division.

Its also not clear what will happen to The Winston, the annual all-star race held each May. The rights to that event have always been included with the title sponsorship agreement.

Nextel is known among cell phone providers for its push-to-talk feature, which allows people to use their cell phones like walkie-talkies within a local area.

Ganis said that feature is used heavily in cities and by companies that keep lots of workers out in the field on a daily basis.

In that sense, he said, the Nextel signing fits well with NASCARs ongoing effort to gain popularity in larger markets for the sport, which has long been associated with the South. Last week, NASCAR said it will shift a key Labor Day race from South Carolina to Fontana, Calif., outside Los Angeles.

Ganis said the tie to NASCAR, whose fans are famously loyal to sponsors, may also help Nextel in one of the few remaining growth demographics for wireless companies.

Golfers all have at least one, maybe two or three cell phones, he said. The segment of the population that either doesnt have a cell phone or is price- and service-sensitive is one that NASCAR seems to appeal to. It appeals to the average American, and the average American is sensitive to cell phone pricing.